The correct answer is D.
Price discrimination is a pricing strategy where a monopolist charges different prices to different consumers for the same good or service. This can be done by segmenting the market into different groups of consumers with different price elasticities of demand. The monopolist will then charge a higher price to consumers with inelastic demand and a lower price to consumers with elastic demand.
Price discrimination can increase the monopolist’s profits by increasing the amount of revenue it collects. However, it can also reduce the welfare of consumers by making them pay more than they would otherwise for the good or service.
Option A is correct because price discrimination can help a monopolist to maximize its profits. By charging different prices to different consumers, the monopolist can extract more surplus from consumers.
Option B is also correct because price discrimination can allow a monopolist to share the consumer’s surplus with consumers. By charging a lower price to consumers with elastic demand, the monopolist can make them better off.
Option C is incorrect because price discrimination can reduce the welfare of masses. By charging a higher price to consumers with inelastic demand, the monopolist can make them worse off.